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    US Defense Contractor, Private Equity Firm to Form Cybersecurity Company

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    US defense contractor Raytheon and the private equity firm Vista Equity Partners will establish a new cybersecurity company in a $1.9 billion joint venture deal, Raytheon announced in a statement.

    WASHINGTON (Sputnik) — The new company will combine Raytheon’s cyber defense unit Cyber Products and Websense, which is owned by Vista Equity Partners.

    The enterprise value of the joint venture is $2.3 billion and the deal is expected to be finalized in the second quarter of 2015.

    Raytheon will have an 80 percent stake in the joint venture.

    "The market for advanced cyber solutions that protect and defend global industry and infrastructure is rapidly growing due to the sophisticated threats posed by well-funded, nation-state adversaries and criminal networks,” Raytheon Company Chairman and CEO Thomas Kennedy said in the statement on Monday.

    "The new joint venture will combine Raytheon Cyber Products and Websense capabilities to deliver the advanced, defense-grade technology solutions needed to meet this evolving threat," Kennedy added.

    The deal brings together Raytheon’s portfolio of government and private sector clients with Websense’s 21,000 customers and 2,200 partners, while combining the two companies’ cybersecurity strengths and assets.

    "We believe the combination of Raytheon Cyber Products and Websense creates a strong foundation for growth in the cybersecurity market, especially in light of the combined technical, product and multi-channel strengths each brings to the table," Vista Equity Partners President Brian Sheth said.

    In recent months, a number of high-profile cyberattacks have targeted US government agencies and the private sector, including Sony Entertainment and the State Department. The market for cybersecurity solutions is expected to grow as the range of cyber threats continue to pose unique challenges to governments and companies.

    The Raytheon-Vista deal comes as the US Congress is expected to vote on cybersecurity legislation this week that will enhance cooperation and information on cyber threats between the US government and the private sector.

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    Tags:
    cybersecurity, Vista Equity Partners, Raytheon
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